Going to the mall? You might buy your next car there, too

Toyota Canada launched “Towards Tomorrow by Toyota” at select shopping centres in Quebec, Ontario and British Columbia this fall

Handout, Toyota

Manufacturers are changing how they sell vehicles, and you may never have to set foot in a dealership again

by
Emily Chung | November 30, 2016

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Mention buying a new car and most people will be able to identify the pain of the process. From negotiating on price to choosing which types of financing/leasing options, buying a new car can be stressful. Overall the process hasn’t changed much over the years, but manufacturers are slowly changing how they approach consumers. Even the marketing realm has developed from pitching the vehicle in straight-up advertising streams to a more subtle “lifestyle” presentation of the brand.

This month, Toyota Canada opened pop-up retail stores in Montreal, Richmond Hill and Vancouver – open until January 30, 2017. You can also test drive various Toyota vehicles in the mall’s parking lot during weekends. Inside these pop-up stores are a few urban vehicles (Richmond Hill displayed the Corolla sedan and Corolla iM hatchback, RAV4 Hybrid and 86 – formerly known as FR-S), interactive virtual reality displays featuring Toyota’s technology, as well as brand ambassadors to make the space engaging and informative.

The concept of car manufacturers having some presence in shopping malls isn’t entirely new, though in the past it’s usually been the display of vehicles from the local dealership in open spaces. We’ve seen the car sales game changed with Tesla, who opened up retail stores and brought the real estate model to purchasing vehicles. Much like buying a new home, you now put a down payment on a vehicle that has yet to be built and will not be delivered to you for a few years; while most manufacturers are selling next year’s models today – 2017 models available in 2016 – Tesla sells its current models to be delivered a couple of years later. Admittedly, Tesla has a niche in the market and some very loyal fans – and Tesla’s retail store concept makes sense, as it doesn’t have many dealerships available.

Genesis Motors (Hyundai’s luxury brand) has launched in Canada with “a modern, human-centred purchase and ownership model.” Genesis currently doesn’t have any physical dealerships, and in the short-term it intends to sell the vehicle through innovative methods. “Genesis At Home” is a concierge service where a Genesis representative will go through a demonstration and vehicle test drive at your location; the goal is to create a stress-free customer experience. You will also be able to complete paperwork, make a deposit and place an order for the new vehicle online. Genesis currently offers two models (the G80 and G90 luxury sedans), and intends to expand to six models by 2021. The manufacturer also plans to open retail locations in shopping centres by mid-2017 and plans to “offer a luxury shopping experience in a sophisticated store setting.” In addition, Genesis Motors Canada wants to open 30 stand-alone facilities beginning in late 2017.

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Toyota Canada actually did a pilot project in Ontario earlier this spring, opening a pop-up retail store for three months in Mississauga’s Square One mall. According to Jamie Humphries, director of marketing, those who walked into the store told an average of three people, which translated to a touchpoint of approximately 200,000 people. Based on the success of the pilot project, Toyota is confident this is the right path to take. Humphries insists the pop-up store isn’t meant to push sales but rather inform and inspire consumers about the Toyota brand.

Interactive displays are featured in Toyota’s mall “showroom”

There’s no pressure to buy; in fact, the store is manned by “brand ambassadors” versus car salespeople. The store is also meant to generate quality leads to the dealership. Humphries noted the benefit of a pop-up store versus an auto show (Toronto is gearing up for the Canadian International Auto Show in February 2017) as being “less hustle and more intimate” –which makes sense, considering the large crowds at auto shows and long lineups for a chance to get up close to the vehicles. Toyota may not be a boutique or luxury brand, yet it strives to connect with consumers in an innovative way.

Do you remember GM’s defunct Saturn brand? It offered a no-hassle buying experience at the dealerships, and you couldn’t negotiate on pricing if you wanted to. Saturn’s idea was that it wanted to get away from the stressful negotiation associated with new vehicle purchases; perhaps it was ahead of its time. As consumers, our buying preferences have evolved – and manufacturers will need to revisit and assess their sales strategy if they want to stay relevant.